About Lesson
Balance Sheet
- Balance sheet provides detailed information about a farm’s assets, liabilities and net worth.
- Asset are the things that a firm own and have value. They can be either sold or used by the firm to make products.
- Assets include
- physical properties like buildings, vehicles, equipment etc.
- Trademarks and patents
- Investments etc.
- Liabilities are the amount of money that a company owes to others. It includes all kind to obligations like money borrowed from a bank to launch a new product, rent for use of building, payroll, taxes and all other costs.
Net worth:
- It is also known as capital or shareholder’s equity. It is the amount of money that would be left if a company sells all of its assets and paid off all its liabilities.
- Net worth = Total assets – Total liabilities